The Kentucky Court of Appeals has ruled in favor of a Waco couple who were the subject of a foreclosure action by Bank of New York Trust Company and Mortgage Electronic Registration Systems.
The litigants, who lost their case against Donald Wayne and Roxane Abner in Madison Circuit Court, had sought to force the Abners into an arbitrated settlement over a $40,000 mortgage.
The lenders filed a foreclosure action in December 2003, only 15 months after the loan originated, according to court documents.
The Abners, represented by Addison Parker of the Appalachian Research and Defense Fund, a legal service group, filed a counterclaim, alleging that the mortgage’s 10.125 percent interest represented a “predatory high-cost loan” that violated the federal Home Ownership Equity Protection Act.
The act provides for rescinding mortgages that violate the federal Truth In Lending Act as well as awarding both statutory and enhanced damages.
The Abner’s mortgage contract called for waiving any damages as well as for arbitration.
On July 25, the appeals court affirmed the trial court’s finding that the arbitration clause was “unconscionable and unenforceable.”
When they contested the foreclosure, the Abners attorney alleged that the lenders were guilty of usury and breach of contract by assessing charges and penalties “that were excessive and unauthorized.”
While Kentucky law generally favors arbitration to resolve contract disputes, even when fraud is alleged, the appeals court stated trial courts may invalidate arbitration clauses of “one-sided, oppressive and unfairly surprising contracts.”
The Abners’ allegations of predatory lending practices may be valid the appellate judges said, but the mortgage contract’s arbitration cause was the only issue on appeal.
“There is little doubt that Kentucky homeowners are suffering from the past abuses of some mortgage lenders,” said William Snyder, director of Volunteer Lawyers for Appalachian.
“In many cases, these abuses may give the victims a legal right to save their homes. If more homeowners knew of the availability of legal assistance, more homes might be saved from foreclosure.”
Bill Robinson can be reached at brobinson@richmondregister.com or at 623-1669, Ext. 267.
Local News
Couple wins foreclosure appeal against N.Y. bank
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Franklin County Circuit Judge Phillip Shepherd said he expects to enter a ruling in the case by mid-week.
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A couple was hospitalized after their home was set ablaze Sunday by a spark from a cigar, according to a county fire official.
County Fire Chief Jim Cox said the city and county fire departments were called to the home at 111 Concord Road in the early afternoon. Waco Volunteer Fire Department and the Richmond Fire Department also responded.
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Arlington Country Club, which has been a staple of Eastern Kentucky University for the past 40 years, laid off all dining staff late last week, according to Tom Coffey of the EKU Foundation.
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About 1:53 a.m. Friday, police received a call about a man who was threatening someone with a knife at the motel on North Keeneland Drive, according to Richmond Police Chief Larry Brock.
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Noted author to deliver keynote address for Black History Month
Almost a year ago, Arnold Rampersad stood in the East Room of the White House as he was presented the National Humanities Medal by President Barack Obama.
On Thursday, Feb. 16, the noted author will stand in O’Donnell Hall of Eastern Kentucky University’s Student Success Building to deliver the keynote address for the university’s Black History Month observance. Rampersad’s visit is also part of Eastern’s year-long Chautauqua lecture series, and the title of his talk, “Black History: The Challenge of Living with Others,” coincides with this year’s Chautauqua theme, “Living with Others: Challenges and Promises.” -
Habitat for Humanity
Habitat for Humanity of Madison and Clark Counties, which has built 160 homes for people in need since 1992, is seeking applicants for partner families, according to Judy Flavell, executive director of the organization.
“We really need applicants right now,” Flavell said. “More people can qualify for Habitat homes than people realize.”
Eligible applicants must have lived in Madison or Clark counties for at least one year, have a stable income, be able to pay a modest monthly mortgage and be able to demonstrate that their current housing is overcrowded, physically substandard, too expensive, unsafe, or they are living in subsidized housing, according to Habitat.
For more information about eligibility, or to apply, call Habitat for Humanity at 625-9208 or visit its office at 1417 East Main Street in Richmond. Visit online at habitatmadisonclark.org. -
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For local adults who are experiencing memory loss related to dementia or Alzheimer’s, the Department of Occupational Therapy at Eastern Kentucky University has provided “The Place to Be” for the past two decades.
The department will again sponsor the free eight-week program on Thursdays and Fridays, 10 a.m.-2 p.m., beginning Feb. 9. Participants can attend Thursday and/or Friday. Applications still are being accepted (call 893-0653) for the free service, which is offered in Room 100 of the Dizney Building on EKU’s campus. -
Bible Belt towns in state consider going ‘wet’
In this Appalachian college town where socially conservative views are bedrocks of life, some people want to do what was once unthinkable: legalize liquor sales.
Supporters say passing the measure in Tuesday’s special election in Barbourville would tap a new revenue source in a place where hundreds of jobs are evaporating as one plant shuts down and another cuts its workforce in half. But from the pulpits to the courthouse square, opponents have been pressing their case that uncorking liquor sales would irreparably harm the town of about 3,200. - More Local News Headlines
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